Volvo XC90 discounts to end

New Volvo XC90 priced from £45,785

Outgoing car attracted 25% discounts

New car priced to rival BMW, Mercedes

Jim Holder, Editor

Aug 26, 2014

The new Volvo XC90 is priced to compete with the Audi Q7, BMW X5 and Mercedes M-Class, and will not be discounted in the same way as the outgoing car, according to head of product and pricing Iain Howat.

So far, Volvo has confirmed that the new, entry-level XC90 D5 AWD model will cost from £45,785, with the range-topping XC90 T8 ‘Twin Engine’ petrol-hybrid costing around £60,000. No other prices will be confirmed until the XC90’s official unveiling at the Paris motor show on October 4. From that point customer orders will be taken, ahead of projected first deliveries next March.

However, Howat explained that the culture of 25% discounts off the list price of the outgoing XC90, which is now a 12-year old design, would stop with the launch of the new car.

'The liklihood is that demand will outstrip supply for at least 12 months, so our level of incentives to dealers will reduce, and I’d expect them to fight for as high a margin as they can get,' said Howat. 'The new XC90 has been designed and kitted out specifically to take the fight to its rivals – and we believe we have a credible alternative to them.'

Howat also reiterated Volvo’s long-held ambition to be regarded as a premium manufacturer in the vein of Audi, BMW and Mercedes. 'We now have the latest chassis and powertrain technologies, confident design and advanced technology. There’s no reason buyers can’t regard us as a credible alternative to the mainstream,' he said.

In addition, a limited edition of 1927 cars will kick-off sales of the new XC90 in a global online sale from September 3.

Called the Volvo XC90 First Edition, the number of cars being sold celebrates the year Volvo was created. UK buyers will be able to buy a D5-engined car with every possible option specified plus 21-inch alloys and a unique interior design for £68,785.

Howat admitted the XC90 First Edition was a step in to the unknow for the firm. 'Order books will be open for 10 weeks, and we've no idea if the cars will sell out in 24 hours or a few weeks, but it is an interesting exercise to see what's possible for the brand.

'It is a very well specced car and carries a healthy level of discount for the amount of kit it has on it. We watching with interest at what the uptake will be.'